Retail stores need more innovation- report
CAPE TOWN – Broll Property Intel today released a report titled "The Evolution of Retail", that focuses on how the retail property sector is evolving and highlights some of the changing retail, consumer and technology trends.
According to the firm, Competition in South Africa's retail market is intense, with more than 25 million square metres of formal retail space currently, in excess of 2,000 existing shopping centres and close to three million square metres of formal retail space in the pipeline.
Elaine Wilson, Director of Broll Property Intel said in a statement: "In the face of increased competition, shopping centre owners, developers, managers and retailers need to be alert to and agile in responding to the latest trends, consumer behaviour and technology in a fast-paced, ever-evolving industry"
"With Broll managing in excess of four million square metres of retail space in the South African market, the group is at the coalface of the industry. Our research division is leveraging off this, producing extensive research on various consumer, retail and technology trends in the sector"
The Evolution of Retail report looks at retail trade sales and consumer confidence levels in the country over the last 10 years, which provides insight into the growth of the industry, but also how in recent years both retailers and consumers are coming under increasing pressure.
The wide-ranging report also tracks changes in the retail and shopping centre environment itself, such as the growing trend of experiential stores and the growth of cashless payment systems.
On the consumer front, Theresa Terblanche, a Divisional Director at Broll, says South African consumers are anticipated to become more mindful of spending, focusing "more on needs and less on wants".
In the report, she said, "This may begin to negatively affect retailer turnovers, which could result in store closures, consolidations and downsizing."
"Over the last few years SA's retail market has seen the entry of a number of international retailers, be it luxury brands that play on consumer's aspirations, or middle-market retailers (such as H&M) that consumers have been hyped up about."
"Noteworthy in the retail market has also been the exit of various brands, including the likes of Nine West, Mango, Dunkin Donuts and more."
Broll Portfolio Executive, Marion Plint explains in the report: "The South African retail market cannot be approached with a 'cookie cutter' model - pricing and offerings need to be tailored to suit our unique consumers."
On the online shopping front, the report notes that not all retailers have jumped on the online train, with some still offering a single channel shopping experience either in bricks-and-mortar stores or online only.
"Retailers cannot afford to miss out on opportunities that Omnichannel presents. With the increase in comparative shopping occurring online as well as via social media, Omnichannel has become the order of the day for all retailers," said Terblanche.
Written by: Staff Writer.
Guzzle Media
